Ethereum trend lines are taking
the shape of a rising wedge. Thus, indicating a bearish situation in the trend
lines.

At the time of reporting the
news, the price of Ethereum was at $142.12.
The price is not currently showing signs for an uptick, but the numbers
of active Ethereum addresses are increasing.

Eric Conner stated,
“Ethereum’s active addresses are beginning to rise over again; however,
the gap between usage and price continues to be
wide. Historically, this gap mostly closed by price recovery.”

While the active addresses on
Ethereum are increasing, the numbers of unique addresses involved in the
transaction have not increased as much.
There is a daily increase of 90,840 with the overall unique addresses
being close to 60 million.

Ethereum despite its second price
has been losing its market share.
Projects like Tron and Eos are enjoying a higher speed, but Ethereum is
being left behind.

Vitalik Buterin, the co-founder of Ethereum, have acknowledged the shift, but he states that there is nothing to worry about it.

“It is true that ETH lost
some lead to a notable extent, and I think it is just because, first, it is
kind of inevitable and unavoidable as Ethereum really was the first of it’s
kind general purpose smart contract in the market. That is a part of the
inevitable part of the whole process,”

To overcome the unique address
issue, Ethereum is working on the scaling issue:

“Ethereum’s scaling plan
being a multiyear process is exceptionally difficult to execute; therefore
developers are trying out other options,”

Tron and ETH are battling for
supremacy, and both the founders are poster boys for their respective brands.
TRON being scalable attracted away a lot of projects from Ethereum. ETH is
struggling with scalability. ETH has more developers because it is
well-capitalized.

Despite all the Pros that Tron
has to talk of, there is a lot of media attention for Ethereum. Since ETH are
working towards scalability and they are planning from the shift from proof of
work to proof of stake, there is a lot of prospective attention for the token.

A downside correction is expected
concerning the price of the Ethereum.
The price is likely expected to correct below the trendline of $142 in
the short term. The $141 might likely
act as a strong support area.

The key support level is seen at
$139 level. However, this price served as a strong resistance before. The MACD is in the bullish zone; the major
support level is seen at $141; major resistance level is seen at $146 with the
hourly RSI correcting lower at the 80 levels.

About The Author

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.